Bargain homes may be coming to a close in 2013

One would have to be under a rock in a remote country not to be aware that the housing market nationally took a monumental turn for the good. Here in the Houston area is no exception.

After experiencing 19 straight months of upward sales, Houston-area buyers should be aware that 2013 more than likely would be the last year for a while to find “bargains.” Sales are not the only thing on the rise, so are sold prices of homes. So what will 2013 have in store?

Homeowners looking to sell in 2013 should be assured that they would not be selling at the bottom. In fact, many neighborhoods find themselves in a seller’s market. Potential buyers in 2013 may be more motivated to purchase while affordability is still extremely high and mortgage rates continue to be historically low.

Lawrence Yun, NAR chief economist, said, “Rising home prices and gradual uptrend in mortgage interest rates will offset improvements in family income, but 2013 likely will be the third best on record in terms of household buying power. A window of opportunity remains open for buyers who can qualify for a mortgage.”

Buyers must arm themselves with recent and comprehensive local market information in order to make an informed, educated decision regarding their home purchase. Remember, purchasing a home for many is the largest procurement they will make during their lifetime.

The old real estate axiom “location, location, location” has remained true to the housing market recovery. Houston is the leading metro area for affordability in the nation. In addition, the Houston area was first in the country to break the memorable slump the whole country experienced.

When choosing a location in the Houston area, have your personal Realtor research trends of the neighborhoods you are considering. Unique personal factors for buyers largely determine location.

Experience has proven that the more buyers know about viewing a home smartly, the improved likelihood buyers have of making the right decision.

Prior knowledge will result in a successful transaction for both buyer and seller. When viewing homes, buyers need to consider the following:

1. How much can you afford? Ask for a recommendation of a qualified professional loan officer.

2. Hire a professional buyer’s rep to guide you through the process and represent you.

3. Allow the buyer’s rep to interview you to determine your “needs and wants.”

4. Remember, buying a home is one of the most important investments you can make, so do not hold back. Ask questions. Fewer surprises will occur after you have moved in, if questions are addressed beforehand. Most sellers will understand, so open doors look under rugs, etc.

6. Keep your memory sharp by writing pros and cons on the MLS sheet provided to you by your agent. This process is very important to reach your real estate goals in a more efficient manner.

7. Get a home inspection, including a termite inspection from a qualified professional.

8. If truly interested in a home, come back to the neighborhood at different times of the day to know about traffic (air, street, railroad, etc), industrial noise or odor.

9. Making a positive impression on sellers can be very important because sellers have been known to allow their personal impressions of buyers affect negotiating evaluations.

Sellers, if you are on the fence about selling your property, you may want to act now. Interest rates are low, and there appears to be a shortage of homes on the market in our area; so what are you waiting for?

Contact the Franke Team Keller William Realty for commercial or residential real estate. Website and blog: www.franketeam.com; phone: 936-647-4400.